The European Stability Mechanism (ESM) on Thursday approved the second early repayment of Greece’s loan to the International Monetary Fund, amounting to around 3.3 billion euros.
The boards of the ESM and the European Financial Stability Fund (EFSF) have agreed to waive the mandatory early repayment obligation of MES / EFSF loans as part of the second early repayment to the IMF that Greece is considering, a announced the MES.
“Thanks to the waiver approved today, Greece will be able to make a second early repayment to the IMF. This will have a positive impact on the country’s finances, thanks to a reduction in debt service costs. It will also boost market confidence in Greece, as it follows ESM / EFSF program countries Ireland, Portugal and Cyprus, which have repaid their IMF loans earlier than expected, ”said Klaus Regling, Managing Director. of ESM and CEO of EFSF.
“The ESM and the EFSF are long-term partners of Greece, and we will continue to support Greece in its efforts to implement policies that improve growth and preserve debt sustainability – it is in our best interests. mutual, ”added Regling.
On February 8, the government sent formal requests to the ESM and the EFSF proposing an early repayment of part of its outstanding loans to the IMF, amounting to around 3.3 billion euros (around 65% of l ‘outstanding loans to the IMF). This will be Greece’s second early repayment to the IMF, after repaying 2.7 billion euros in November 2019.